Around the Net
What Threat Could Brexit Pose To Internet Companies?
- CNBC.com, Tuesday, June 28, 2016 7:24 AM
With Dow plummeting, the focus is on Internet giants that could be affected by the Brexit vote. CNBC.com reports that Needham's Laura Martin issued a note pointing out the risk and uncertainty the Brexit decision brought for Internet giants' growth rates and valuation multiples. "Martin pointed to the fact that just 200 million of Facebook's one billion daily users were in the U.S. That could spell challenges when translating those growing overseas revenue streams into a strengthening dollar." In addition, there's also uncertainty about how regulations would change in the U.K., as well as in the EU. In fact, it was the U.K. that got credit for pushing the EU to take a lighter touch where tech regulation is concerned. "The U.K'.s exit of course raised concerns that the EU would take a much stiffer approach to regulations on how companies such as Google handled personal data. The U.K.'s Data Protection Act would remain in force, according to the U.K.'s Information Commissioner's Office," but the EU's tougher General Data Protection Regulation won't apply in the U.K. Still, that doesn't mean tech companies operating in the U.K. are off the hook. "The U.K., even though it won't be part of the EU, would have to reform its privacy laws so data could cross borders without issue."
